What is Forex

History 

Forex, or FX, is the acronym for Foreign Exchange market, a market where it operates with several international currencies. It is an interbank market that was created in 1971 when the international operations were in a period of transition from fixed to variable rates of change. As a result of his incredible volume and liquidity, the FX market has become the largest and most important in the world financial market.

Below you can see some of the unique features that are the reason for their success:

• The Forex markets are open 24 hours 
• Greater Liquidity daily FX market volume - more than 4 Billion Dollars - easy to operate with most badges instantly 
• You can benefit from both rising markets and falling 
• You can benefit from leveraged low initial margin 
• There are standard tools available to help control risk exposure 
• Transparency: the Forex market is transparent ... just need to stay informed 

Exchange Rates 

The Forex plays an indispensable role in determining the rates of global change. The exchange rate is the number of units of currency of a nation that must be exchanged to acquire a unit of currency of another nation. A market exchange rate between two currencies is determined by the interaction of public and private members of the Forex market.

Market members 

The key members in the Forex market are: Central banks, commercial banks, financial institutions, corporations and individual investors. The main reasons for their participation in the Forex market are:

• Profits generated by the fluctuations of currency pairs (speculation) 
• Protecting fluctuating currency pairs derived from the trade of goods and services (coverage) 
• With the technical development, the Internet has facilitated the ability to conduct operations, as it gives access to investors and operators to the latest Forex news, to technology and tools.